Traditional Toys and Games in the US

PROSPECTS

The fall of Toys “R” Us

In March 2018, after years of declining sales, Toys “R” Us – the largest dedicated traditional toys and games retailer in the US, and the only one with a truly national profile – announced it was liquidating its operations and shuttering all of its US stores. Although many factors contributed to the failure of Toys “R” Us, one of the most important was its inability to successfully adapt to the rise of e-commerce.

Declining birth rate threatens traditional toys and games

There were a variety of factors that led Toys “R” Us to go out of business in 2018, but one was a startling demographic shift. In 2007, according to the US Centers for Disease Control and Prevention (CDC), over 4.

The collectibles craze continues to boost sales

In 2016, the growth of collectibles was one of the biggest stories in traditional toys and games, with existing brands such as Shopkins seeing massive sales, and new brands such as Hatchimals becoming surprise hits. In 2017, this trend intensified.

COMPETITIVE LANDSCAPE

The shine comes off of Star Wars

After years of growth, the combined value sales of all licensed traditional toys and games in the US barely increased in 2017. One reason seemed to be the precipitous decline in sales of licensed Star Wars toys.

LEGO Group’s woes signal tough times ahead for construction toys

In 2017, Danish construction toy manufacturer LEGO Group – the third largest traditional toys and games manufacturer in value terms in the US – announced its first worldwide revenue decline in 13 years. This was mirrored in the US market, with the fractional value decrease seen in 2016 strengthening significantly in 2017.

Spin Master continues its acquisition spree

Of the five largest traditional toys and games manufacturers by value sales in the US, none posted higher growth in 2017 than Spin Master, which surpassed Hallmark Cards (Crayola) to become the fourth player. The Canadian toymaker expanded rapidly over recent years, due in part to the phenomenal success of Paw Patrol and Hatchimals.

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